EUR/USD 1.3630 – 11 March 2010

EUR/USD Open 1.3645 High 1.3677 Low 1.3548 Close 1.3653
On Wednesday the European currency showed a sign of recovery although Germany’s Trade balance slumped to 8.7 comparing to the 16.4 bln expectation. The Euro/Dollar depreciated down to 1.3541, from where it rallied to 1.3677, closing the day at 1.3653. Our expectations for the currency couple are to continue rising in the short term, especially is we see convincing break of the nearest resistance and yesterday’s peak 1.3677. In the medium term expectations are neutral, till we get a strong sentiment data to get the Euro out of the 1.3461 – 1.3779 trading range, seen on the 1 hour chart. Going bellow yesterday’s bottom and first support 1.3548 may return the currency couple back within the bearish channel, towards next target 1.3468. There are no major economic events for Europe today. Quotes are moving bellow the 50 and above the 20 EMA on the 1 hour chart, indicating slight upward correctional pressure. The value of RSI, MACD and CCI indicators are all positive and dovish on the 1 hour chart, giving overall neutral signals.
Technical resistance levels: 1.3677 1.3770 1.3895
Technical support levels: 1.3541 1.3468 1.3370

Trading range: 1.3620 – 1.3680
Trend: Upward
Buy at 1.3630 SL 1.3600 TP 1.3670

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